Easy money expands bubbles, pinches savers, and stretches pension funds, according to Das, the author of The Age of Stagnation, which will be published in February 2016.

Das makes a case that rates should be allowed to rise, if slightly, to begin to restore equilibrium to the worldwide economy. He writes:

In the U.S., a one percentage-point boost in rates would increase U.S. government interest costs by around $180 billion from its present level of around $400 billion. Unless offset by increased economic activity, this would increase both the budget deficit and government debt levels. The normalization of rates to say 2.50%-3.00% may prove financially and economically destabilizing.

Low rates and QE have also reduced the political appetite for needed policy changes. Lower interest costs have sapped the willingness for fiscal reforms, debt reduction, and structural reforms.

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